Art. 1 January 2021
January 19, 2021
Martingale Risk is Investigating for a Potential Collective Lawsuit Against Bio-On SpA. Based on Recent Consob Sanction no. 21650
Martingale Risk is investigating to open a potential collective lawsuit against Bio-On SpA., the Bologna-based company specialized in bioplastics. The former unicorn has created one of the most substantial bubbles in recent times. The bubble popped when they were declared bankrupt by the Court of Bologna on Dec 20th, 2019 (sentence no. 137/19).
The Italian Police investigated Bio-On after Quintessential Capital Management published a report doubting the legitimacy of Bio-On's financial statements, among other things, exposing Bio-On's alleged accounting irregularities. Bio-On claimed to be the owner of over 200 patents and patent applications, while in the patent register at the Ministry of Economic Development only 2 were identified as attributable to Bio-On.
In essence, the Bolognese company had a billing structure based on a series of "empty boxes to which it sold its technology in the form of licenses" (Maurizio Salom, accountant appointed by Quintessential). In addition, the Guardia di Finanza raided Banca Finnat's headquarters on October 23, 2019, as they had acted as Bio-On's intermediary Bank since the company's 2014 listing. Finnat also had minority stakes (shareholder of 10%) in two of Bio-On's subsidiaries, Liphe SpA and Aldia SpA, which were not mentioned in their financial statements. A little over one year later, Bio-On was recently sanctioned by Consob, the Italian Financial Authority, under Resolution no. 21650.
If you invested in Bio-On and incurred losses, please contact us.